Strategic bidding in electricity markets: An agent-based simulator with game theory for scenario analysis

Tiago Pinto, Isabel Praca, Hugo Morais, Tiago M Sousa

Research output: Contribution to journalJournal articleResearchpeer-review

680 Downloads (Pure)

Abstract

Electricity markets are complex environments, involving a large number of different entities, with specific charac-teristics and objectives, making their decisions and interacting in a dynamic scene. Game-theory has been widely used to sup-port decisions in competitive environments; therefore its application in electricity markets can prove to be a high potential tool. This paper proposes a new scenario analysis algorithm, which includes the application of game-theory, to evaluate and preview different scenarios and provide players with the ability to strategically react in order to exhibit the behavior that better fits their objectives. This model includes forecasts of competitor players’ actions, to build models of their behavior, in order to define the most probable expected scenarios. Once the scenarios are defined, game theory is applied to support the choice of the ac-tion to be performed. MASCEM (Multi-Agent System for Competitive Electricity Markets) is a multi-agent electricity market simulator that models market players and simulates their operation in the market. The scenario analysis algorithm has been tested within MASCEM and our experimental findings with a case study based on real data from the Iberian Market are pre-sented and discussed.
Original languageEnglish
JournalIntegrated Computer-Aided Engineering
Volume20
Issue number4
Pages (from-to)335-346
ISSN1069-2509
DOIs
Publication statusPublished - 2013

Keywords

  • Decision Making
  • Electricity Markets
  • Intelligent Agents
  • Game Theory
  • Multiagent Systems
  • Scenario Analysis

Fingerprint

Dive into the research topics of 'Strategic bidding in electricity markets: An agent-based simulator with game theory for scenario analysis'. Together they form a unique fingerprint.

Cite this